What is the maximum future value obtainable

Assignment Help Financial Accounting
Reference no: EM132567996

Lucas wishes to determine the future value at the end of two years 0f a Sh.150, 000 deposit made today into an account paying a nominal interest rate of 12%.

Question a. Find the future value of Lucas' deposit assuming that interest rate is compounded:

1) Annually

2) Quarterly

3) Monthly

Question b. Using your findings in a demonstrate the relationship between compounding frequency and future value

Question c. What is the maximum future value obtainable give the Sh.150,000 deposit, 2-year time period, and 12% nominal rate? Using your findings in a to explain

Reference no: EM132567996

Questions Cloud

How projections used to establish appropriate loan covennant : How are projections used to establish appropriate loan covenants?Projections are the prediction of future cash flow that lenders rely upon to determine
Leadership theories and leadership styles : Determine two leadership theories and two leadership styles that support the definition of a public leader.
What the warranty expense related to the sales would be : At the end of the 2017 the warranty liability and the warranty expense related to these sales would be?During 2017, Smith Electronics sold 250 microwaves
What is Agarma effective tax rate : The estimated warranty liability related to company sales in 2019 was $19,600. What is Agarma's effective tax rate for 2019
What is the maximum future value obtainable : What is the maximum future value obtainable give the Sh.150,000 deposit, 2-year time period, and 12% nominal rate? Using your findings in a to explain
Calculate Agarma future income tax balances : Calculate Agarma's future income tax balances at December 31, 2019 and specify whether they are assets or liabilities
What type of investment return will need to earn : What type of investment return he will need to earn. Figure out the annual compound rate of return needed in each of the case
Policies of american red cross organization : Examine the various personnale practices and policies of the American Red Cross organization
Prepare bank reconcilliation sandhill co : Prepare Bank Reconcilliation Sandhill Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2019

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare dated journal entries to record the transactions

Prepare dated journal entries to record the transactions and assume that Econ did not enter into a forward contract. Prepare dated journal entries to record the transactions above.

  Provide cash-accounts receivable-inventory-accounts payable

Yolanda Hagen, a former disc golf star, operates Yolanda’s Discorama. At the beginning of the current season on April 1, the ledger of Yolanda’s Discorama showed Cash $1,900, Inventory $2,600, and Owner’s Capital $4,500. The following transactions we..

  Prepare all necessary journal entries for roley

Roley paid freight costs of $1,200. On July 3, Roley returned damaged goods and received credit of $6,000. On July 10, Roley paid for the goods. Prepare all necessary journal entries for Roley.

  What is blue charitable contributions deduction for year

What is Blue’s charitable contributions deduction for the current year? What is Blue’s charitable contribution carryback or carryover (if any)? In what years can it be used?

  What is monthly payment

You will borrow $25,000 to buy a car. If your interest rate is 5% on a 4-year loan, what is your monthly payment?

  What is the book value of an ordinary share

What is the book value of an ordinary share? Nova Company has an authorized share capital of 10,000 8% cumulative preference shares with P100

  Compute the labor efficiency variance-labor rate variance

The Stewart company reported the following results concerning this product in August. Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 9.3 pounds $8.00 per pound $74.40. Compute the materials price variance. C..

  Bank to acquire large tract of land for future expansion

Keyzer Soze LTD requested a sizable loan from First American Bank to acquire a large tract of land for future expansion. Keyzer reported current assets of $6,000,000 ($1,500,000 in cash) and current liabilities of $3,575,000. First American denied th..

  What is the expected npv of kereru fisheries ltd

Kereru Fisheries Ltd estimates that there is a 90% chance that stage 1 will meet all expectations and, consequently, that stage 2 will be undertaken. What is the expected NPV of Kereru Fisheries Ltd's rainbow trout project?

  What is the initial investment outlay for the spectrometer

What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash ?ow? Enter your answer as a positive value.

  Bookstore receives new shipment of awesome dryfit shirts

The bookstore receives a new shipment of awesome Dryfit shirts. You write a check to pay for the shirt. Thinking that you are a step ahead of the game, you list the date on the check as a date 2 weeks in the future.

  Provide conclusions based on panera breads financials

Liquidity Ratios-working capital, current ratio, quick/acid-test ratio, receivable turnover, average day's sales uncollected, inventory turnover, average day's inventory on hand, operating cycle.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd